What is the difference between Direct Write and Independent Insurance Agencies?

Mar 10, 2013

In the world of insurance there are many options for the customer, this week we will discuss two different types of agencies and how those differences affect you.

The first type is the direct write agency (for example, State Farm or Farm Bureau). So, what does direct write mean? It means that the agency works exclusively for a single insurance company that they represent; they are really just an extension of the parent company. This means you only get pricing from that one company when you request a quote. If you happen to have a claim, you deal with a claims adjuster that represents the insurance company. Many times the agency through which you bought your policy has very little to do with the claims process.

In contrast, an independent insurance agency (for example, PCE Insurance) works for YOU. They are able to write policies through multiple companies, which means they can shop around for you to find you the best coverage for the best price. Also, as your policies near the time of renewal, your independent agent can review your policy to make sure your needs are still being met, and that you are still getting the best value possible. Another bonus is that if you happen to run into any questions or issues with the insurance company, your agent can and will be there to assist you every step of the way.

Bottom line your local independent agent has your best interests in mind and they are not beholden to a single, larger parent company. They have so many more options, and really, who would want fewer options?